Bitcoin seems to be gaining ground from the Dow Jones 14 months down while the stock market plummets

14 months low for Dow Jones, as December 2018 turns out to be one of the worst in a decade

Dow Jones it has moved below the threshold of 23,000 after October 2017 and many are saying that this is the beginning of the long-awaited economic collapse looming over our heads.

The index fell more than 10 percent for December, putting it on track for its worst monthly loss in nearly a decade. The technology-intensive Nasdaq is now down nearly 20% from its peak in August. After the continued gains of the spring and summer, inventories fell sharply in the fall, while investors fear global economic growth is cooling down.

"Equity markets are rapidly approaching the capitulation phase after breaking below critical support," said Sam Stovall, CFRA Research's chief investment strategist.

Although the data is still in the gray area, economists and analysts expect Dow Jones and Nasdaq to approach a short-term bear market. To add to the problems, the increase in Federal Reserve rates has made it very difficult for companies to borrow money.

The head of Citi's global equity strategist, Robert Buckland, said the stock market deceleration allowed stock markets to slow down.

He said, "Equity markets are starting to think about the likelihood of a slowdown, but it's not Powell's job to push the stock market in. It's his job to run a monetary policy on a growth and inflation mandate, and the macroeconomic data is pretty robust. ".

Politics also disturbed the markets. Investors were watching the controversial speeches in Washington, DC, which raised new fears that legislators might not be able to agree on an agreement to avoid a partial closure of the government this weekend.

The S & P 500 is now declining by almost 16% and deep into the so-called "correction" territory, defined as a 10% drop or more from a maximum. The current correction is worse than the average price drop of around 14 percent in the corrections during the post-World War II era.

It's not just that the US markets are in trouble. Supervisory markets such as Australia, South Korea and China are facing a similar fate as they see their economies weaken rapidly.